May1, You won't like my reply but your son has agreed that his children will follow the religion of his wife's family, not his own. His choice. The family invited you to their child's religious and sporting events and a shared lunch afterwards. That's nice and then you said the grandchild didn't even look at you at the communion event but the day wasn't about you. Did he really not acknowledge you at all during the day ?
You live further away than the rest of the family who can arrange to lift share so, of course, it's only natural that you provide your own transport. From my experience, it's always harder for the grandparents who lives further away to have the same close relationship with grandchildren as those grandparents who live virtually on the doorstep and it takes a lot of effort all round to make it better (that should mainly be down to your son) but if you give presents like a book about belonging to two religions then I'm not surprised that your daughter in law is cross and doesn't invite you to more intimate gatherings. Again, her choice and it seems your son doesn't want to defend you in this matter either so your concerns should be directed at him, not his wife.
You criticise her family for side-lining you but do you ever invite your daughter in law's extended family over to yours to celebrate Jewish traditions or, indeed, any other stuff? I'm not necessarily defending their behaviour but just telling it like it is! It may not be what you hoped would happen for your grandchildren but it is what YOUR son has chosen and you have to accept that. It is the right of the parents to chose a school of their choice too and shouldn't be criticised openly.
My parents sent me to Sunday school but I grew up to be an atheist but I still chose to send my children to a C of E school because it had the best reputation for education and disciple. My children have grown up to be atheists too but are also happy for their children to attend a C of E school for the same reasons and they also attend the local church for the social events it provides. I don't criticise that and I occasionally go too because I like listening to the music of the hymns but I let all the religious mumbo jumbo go over my head.
It seems the daughter in law has agreed that your grandchild come over when you celebrate Hanukkah etc. That's nice too that he is getting some exposure to your (not his father's)choice of religion. So when your grandchild is older he can decide for himself whether he wants to find out more about granny's religion if he wants to or to have no religion himself.
I did live in the USA for a while and work colleagues of my husband invited us over and then suggested we join their church. I knew they only socialised with church friends but I'm afraid that was too high a price to pay for their friendship!
I think all this turmoil boils down to the fact that your grandchild is not being bought up in the Jewish faith and you are disappointed that your son didn't marry a Jewish girl but usually we can't choose our children's partners for them. Do you have any other children yourself or are all your eggs in one basket, so to speak! I'm sorry you are finding things difficult but it just goes to show, in my opinion, that religion can be the source of all ills!!!!
When my daughter invites her mother in law ( who lives some distance away) over, I don't expect to be invited too because, (living closer) I have easy access all the time. Again, that is for your son to say he wants you more in his family's life if his wife is more reluctant to arrange things independently. It always seems it's the daughter in law who gets the blame. When I married we moved away from the area but, as both sets of grandparents lived in the same town, it was easy to fit them both into our lives when we visited. We usually had them to stay for holidays with us individually, but not always, but both had equal access to grandchildren.